Hemp Oil Merchant Account Services: Credit Card Processing Solutions for a Burgeoning Industry
The industries for which we receive the most inquiries include CBD, kratom, online pharmaceuticals and nutraceuticals. Soon, however, we feel each of the aforementioned will be put on the back burner. Based on recent events, hemp oil merchant account solutions are going to be the No. 1 sought-after industry by the end of 2019.
Hemp and CBD oil are on the cusp of change – for the better.
The U.S. government, we believe, is in the process of ‘loosening’ its stance on the cannabis industry, and that includes hemp and CBD. The evidence is abundant, with more states legalizing marijuana for recreational use (Michigan) and medicinal use (Missouri) in the November midterm elections, as well as the Canadian government opting to legalize – which will no doubt impact the U.S. in many ways.
The hemp industry, however, took a giant step forward Dec. 11, 2018, when the U.S. Senate passed the Farm Bill overwhelmingly (87-13), which now awaits the approval of President Donald Trump (who is believed to be a supporter). Among many other non-hemp related points, the Farm Bill authorizes hemp production and long overdue calls for removal from the Controlled Substances Act.
Additionally, the Farm Bill will:
- Enable for federally funded research into hemp.
- Provide hemp businesses with immunity from federal law enforcement actions (35 states have legalized commercial hemp, even though growth remains illegal by federal law).
- Make hemp farmers eligible for federal crop insurance.
- Provide the framework for federal approval and regulations for CBD.
About Instabill’s hemp oil merchant account solution
Instabill was recently hailed among the Best Merchant Accounts for CBD by CardPaymentOptions.com, and currently has three solutions for hemp oil businesses:
- A domestic credit card processing solution for U.S. merchants
- A debit card scheme, similar to a digital wallet, where consumers connect the card to their bank accounts and fund as needed.
- An aggregate merchant account solution in which the merchants share the billing descriptor with other high risk businesses.
We expect to announce more merchant account solutions for hemp oil (as well as CBD) as the U.S. federal government continues its trend of relaxing restrictions and bringing the hemp industry into the payments mainstream.
Why is hemp considered a high risk industry?
We’ve often referred to hemp and CBD products as ‘guilty’ only by their association with cannabis products. Both hemp and CBD oil are classified as high risk solely because of their relation to cannabis.
We’ve long blogged about benefits of CBD oil, the ‘other’ component in the cannabis plant with levels of THC that are barely traceable. For certain diseases and disorders – such as anxiety and PTSD, epilepsy, chronic pain and even Crohn’s Disease – CBD has emerged a valued and effective remedy. The fact, however, that CBD and hemp are derived from the cannabis plant make them a high risk venture when it comes to sales and the need of a merchant account for such. Most acquiring banks would decline to offer merchant services.
The fact that cannabis remains classified as a Schedule I drug (along with heroin, LSD and other far more powerful substances), also explains why most banks will continue to be lukewarm, hesitant to offer cannabis merchant account solutions.
However, Instabill has long been partnered with several acquirers that welcome high risk industries and merchants, and offer CBD and hemp oil merchant account solutions. It is our belief that more banks will come forward with solutions for hemp merchant services within the coming year.
What is hemp? A plant full of possibilities
Hemp is a type of cannabis plant though with a very low concentration of THC, the psychoactive component in cannabis. It has a variety of uses, particularly in the production of paper, textiles and clothing, cords and rope, and its seeds can be used in grain products, fuel, paints and cosmetics. Hemp is also a low-maintenance crop as it needs little water, breathes in carbon dioxide, prevents soil erosion and removes toxins from the ground.
Our hemp oil merchant account solution: Have a conversation with us today
With a 20-year background of offering high risk merchant services, Instabill has the payment processing solutions in place for hemp oil businesses for merchants who fit the following criteria:
- Domestic e-commerce and MOTO businesses.
- Three months of business banking statements displaying company name and sales figures.
- Startup businesses are welcome and require a bank reference letter with the legal name under which the merchant is applying.
Our hemp oil merchant account experts encourage a 10-minute conversation to get the approval process started. Merchant support is available Monday through Friday (8 a.m. until 6 p.m.) U.S. eastern time at 1-800-530-2444.
The remaining states in which hemp cultivation is illegal
To date, all but 10 states have legalized hemp cultivation. Among them, ironically, are three states in which farming plays a major role in the state’s economy: Idaho, Texas and Iowa. With the recent passing of the Farm Bill through the U.S. Senate, however, said states may want to revisit their laws regarding such. Below is a complete list of states which have yet to legalize hemp cultivation: